All monetary amounts are expressed
in millions of Rands |
| 49. |
STANDARDS, INTERPRETATIONS AND AMENDMENTS TO PUBLISHED STANDARDS THAT ARE NOT YET EFFECTIVE AND STANDARDS
EARLY ADOPTED (continued) |
|
|
| 49.1 |
Standards, interpretations and amendments not yet effective, as applicable to Murray & Roberts (continued) |
|
IFRIC 10, Interim Financial Reporting and Impairment (effective 1 November 2006) |
|
IFRIC 10 addresses an apparent conflict between the requirements of IAS 34 and those in other standards on the recognition
and reversal in financial statements of impairment losses on goodwill and certain financial assets. IFRIC 10 concludes that an
entity shall not reverse an impairment loss recognised in a previous interim period in respect of goodwill or an investment in either
an equity instrument or financial asset carried at cost. Management is currently assessing the impact of IFRIC 10 on the Group's
operations. |
|
|
|
IFRIC 11, IFRS 2: Group and Treasury Share Transactions (effective 1 March 2007) |
| |
IFRIC 11 provides guidance on applying IFRS 2 in the following circumstances: (a) share based payments involving the entity's
own equity instruments in which the entity chooses or is required to buy its own equity instruments (treasury shares) to settle
the share-based payment obligation; (b) a parent grants rights to its equity instruments to employees of its subsidiary; and (c) a
subsidiary grants rights to equity instruments of its parent to its employees. This is applicable to the Group as the parent granted
rights to its equity instruments to employees of its subsidiaries and bought back its own equity instruments to settle its sharebased
payment obligations. The Group will apply IFRIC 11 and the amendment to IFRS 2 from annual periods beginning
1 July 2007. |
| 50. |
CHANGE IN ACCOUNTING POLICY |
|
During the year, the company changed its accounting policy for the valuation of investment property from depreciated historic
cost to the fair value method. Management judges that this policy provides reliable and more relevant information and is in
accordance with international trends towards fair value accounting. The effect of the change in the accounting policy is
as follows: |
| |
|
2007 |
2006 |
|
Impact of depreciation |
– |
4,9 |
|
Fair value adjustment |
252,8 |
(4,9) |
|
Taxation effect |
(25,0) |
– |
| |
Net increase in profit |
227,8 |
– |
|
The above transaction had the following effects on earnings per share: |
|
|
|
Increase in earnings |
227,8 |
– |
|
Number of shares used for basic per share calculation (’000) |
293 929 |
304 837 |
|
Number of shares used for diluted per share figures calculation (’000) |
298 255 |
309 918 |
|
Impact on basic earnings per share (cents) |
78 |
– |
| |
Impact on diluted earnings per share (cents) |
76 |
– |
